If you can save up for a slightly higher down payment your margin for success will be significantly higher.Also, I strongly agree with the "buy the worst in a great neighborhood, live in the worst unit of the triplex and slowly fix it up yourself."

The only time I'd say it's an okay idea is if either: The area you're investing in is expecting so much appreciation that you will easily profit off that (watch out for mortgage interest though...the appreciation needs to be higher than what you pay in that and expenses to make it profitable)You have some specific reason for wanting to do it- family ties, future home, major long-term hold, etc.Maybe I'm forgetting another one, but those two are all I have for now...

Another draw back is short term your expenses will be higher because you are paying the mortgage plus paying back the loan but that is a short term draw back until the loan is paid back.How it works: I have experience with my wife's company and mine, each is a little different. 

If the Ensuing damage is also not covered, the total loss could be vastly higher.  

Demand may be higher and supply continues to be tight. 

Your property taxes will also be higher as you can't use the home owner's grant.There might be local RE meet ups in Vancouver area where you can go and listen to what others have to say. 

If they won't let you build on it, explore doing a lot tie agreement so that you can combine the parcels and when you go to resell it, you can ask for a higher price point based on the large lot.

So really to have a higher chance at success you should have both money to put in the deal to lower your leverage AND money on the sideline to cover those potential cap ex projects. 

We found two contractors and the bid we received to finish the work were higher than the bid we contracted to complete the entire rehab! 

Many pay to much for their needs as they go for high profile CPAs who are targeting working with "higher profile" clients.